3i Keen on Gatwick Airport

3i Infrastructure, the listed fund of the UK private equity group, would like to be involved in the acquisition of Gatwick airport, reports the Financial Times.

Gatwick is currently on the block after the competition authorities issued a provisional ruling in August saying that BAA must sell three of the seven UK airports it owns. Spain‘s Ferrovial, the parent company of BAA, said it disagreed with the Competition Commission and would sell just one airport, Gatwick.

Michael Queen, managing partner of 3i Infrastructure told the UK‘s financial daily that 3i would like to be part of any deal for Gatwick.

BAA is hoping the airport could fetch up to £2bn, but some reports have suggested that it is more realistically worth around £1.6bn.

A string of potential bidders, including airline Virgin Atlantic, German builder Hochtief, Frankfurt airport operator Fraport, Deutsche Bank’s infrastructure arm RREEF and Manchester Airports Group, have expressed their interests.

All bidders are likely to be constrained by the illiquid debt markets.

Source: Thomson Merger News